CALGARY, Oct. 18, 2012 /CNW/ – Toscana Energy Income Corporation (“Toscana Energy” or the “Company”) (TSX Venture: TEI) is pleased to announce that its acquisition of Senmar Capital Corporation (“Senmar”) has been completed and the common shares in the capital of Toscana Energy have commenced trading on the TSX Venture Exchange. This transaction constituted Senmar’s qualifying transaction under the policies of the TSX Venture Exchange.

The Company is also pleased to announce that it has entered into an agreement with a private company to acquire approximately 750 BOEs/D of long life liquids rich natural gas production for $17.5 million. The production base is made up of approximately 23% natural gas liquids with the balance being natural gas. Effective as at December 31, 2011, Total Proved Reserves in respect of the assets that are being acquired by Toscana Energy has been estimated at 1,826,500 BOEs with total Proved plus Probable Reserves in respect of such assets estimated at 3,000,000 BOEs. This acquisition is subject to customary closing conditions being satisfied and is scheduled to close prior to the end of November 2012. It is expected that the assets that are being acquired by Toscana Energy will increase corporate production above 2,000 BOE/D and will be financed through the Company’s credit facilities.

The Company will continue with its current dividend policy with the board of directors of Toscana Energy approving a cash dividend of $0.135 per common share in respect of October 2012 production (or the equivalent of $0.405 per common share on a quarterly basis) to be paid on November 15, 2012 to shareholders of record on October 31, 2012. The ex-dividend date is October 29, 2012. Once paid, total cash dividends distributed by the Company to its shareholders during the 2012 calendar year will be approximately $1.60 per common share.

About Toscana Energy Income Corporation
Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation. Toscana Energy Income Corporation is managed by Sprott Toscana through Toscana Energy Corporation. Sprott Toscana is a member of the Sprott Group of Companies.

About Sprott Toscana
Sprott Toscana (formerly Toscana Merchant Group) is a team of Calgary-based energy specialists that manage three separate businesses: Toscana Energy Income Corporation (through Toscana Energy Corporation), Toscana Financial Income Trust and Maple Leaf Energy Income LPs. In July 2012, Toscana Merchant Group joined the Sprott Group of Companies when it was acquired by Sprott Inc. (TSX: SII), Canada’s leading alternative asset manager and a global leader in resource investing.

Forward-Looking Statements

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Forward‐looking statements and information are often, but not always, identified by the use of words such as “appear”, “seek”, “anticipate”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions.

More particularly and without limitation, this news release contains forward‐looking statements and information concerning the expected results of the acquisition; the Company’s petroleum and natural gas production and reserves with respect to the assets to be acquired; the Company’s petroleum and natural gas production on an aggregate basis upon completion of the acquisition; anticipated closing dates of the asset acquisition; the Company’s dividend policy and business strategy. The forward‐looking statements and information are based on certain key expectations and assumptions made by the management of the Company, including expectations and assumptions concerning well production rates and reserve volumes in respect of the assets to be acquired; expectations and assumptions concerning well production rates in respect of existing wells and project development. Although management of the Company believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations, marketing and transportation, loss of markets, environmental risks, competition, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, ability to access sufficient capital from internal and external sources, failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the TSX Venture Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in theUnited States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.